Puma raises revenue outlook, handling China woes better than Adidas

A purse with the emblem of German sports activities items agency Puma is pictured in a store after the corporate’s annual information convention in Herzogenaurach, Germany February 20, 2014. REUTERS/Michaela Rehle/

BERLIN, July 27 (Reuters) – German sportswear maker Puma (PUMG.DE) reported stronger-than-expected second-quarter earnings on Wednesday and raised its full-year income outlook, dealing with headwinds in China higher than rival Adidas (ADSGn.DE).

Puma mentioned its earnings earlier than curiosity and taxes (EBIT) rose 34.4% on the 12 months to 146 million euros ($148 million), in contrast with analysts’ common forecast for 128.94 million euros.

It raised its full-year gross sales forecast to a mid-teens proportion rise in currency-adjusted phrases, from at the very least 10% – with upside potential – beforehand, and maintained its full-year EBIT steerage.

Adidas on Tuesday minimize its 2022 earnings goal, citing a slower-than-expected restoration in China from pandemic restrictions. learn extra

“It isn’t simple for everybody,” Puma Chief Government Bjorn Gulden mentioned, including his firm “can not count on progress in China in 2022”.

However he mentioned: “We really feel that the elevated investments into R&D, innovation and product improvement over the previous years are beginning to repay.”

Second-quarter gross sales rose 18.4% in forex adjusted phrases to 2.002 billion euros. The corporate mentioned it noticed sturdy progress in all its efficiency classes, equivalent to operating, coaching, crew sports activities, golf and basketball.

Adidas blamed COVID-19 restrictions in China for a gross sales droop there. Puma’s Gulden noticed the primary cause as requires boycotts in opposition to Western textile companies, which have been focused on social media, in response to Western criticism of China’s therapy of the Uighur minority within the Xinjiang area.

In late June, Puma rival Nike Inc (NKE.N) forecast first-quarter income beneath estimates because it anticipated to low cost extra and wrestled with pandemic-related disruptions in China, its most worthwhile market. learn extra

“We do see an elevated stage of uncertainty all over the world,” Gulden mentioned, however added: “I stay optimistic for our sector generally and the PUMA model particularly”.

($1 = 0.9861 euros)

Reporting by Alexander Huebner and Paul Carrel
Modifying by Louise Heavens and Mark Potter

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